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Congress Seems Closer To Passing Prescription Drug Benefits
Aired November 16, 2003 - 16:13 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDREA KOPPEL, CNN ANCHOR: After months of negotiations, it seems lawmakers on Capitol Hill have finally reached a tentative compromise on the Medicare reform and prescription drug bill. But will the delicate truth last long enough for the measure to become law? Congressional correspondent Jonathan Karl joins us from the Hill with details.
So Jon, how is this compromise legislation different from what the president wanted?
JONATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT: Well, there are some difference, but by and large this is what he was looking for. He wanted to get prescription drug coverage for seniors and he wanted to change the way the underlying Medicare system works. Those changes that he got are not quite as fundamental as what he was looking for. He really wanted to insert competition into Medicare.
There is some of that. But the big picture here is he did get what is now his top domestic priority before Congress, at least through a very important step. But now he has to pass it, Andrea, and there is significant opposition in Congress. The president earlier today said he was very happy to hear about the deal, but now he is challenging Congress to get that deal passed and sent to his desk.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think there's going to be immense pressure on members of both the House and the Senate to support this bill. It's a good piece of legislation. It is a complex piece of legislation. After all, we're changing a Medicare system that has been stuck in the past for a long period of time.
(END VIDEO CLIP)
KARL: And already the president has somewhat good news coming from AARP, which is of course the group that represents seniors, some 30 million Americans -- 35 million Americans over the age of 50. They have not endorsed this plan yet, but they said they were pleased with what they have seen and they are hopeful that it will come together and that it will pass.
But Democrats are already coming out. In fact, even before the deal was formally announced up here on Capitol Hill today, one of the top Democrats, maybe the top Democrat on health issues, Senator Ted Kennedy, came out and had some very strongly negative words about the deal.
(BEGIN VIDEO CLIP)
SEN. TED KENNEDY (D), MASSACHUSETTS: The cardinal rule in medicine is to do no harm. And this proposal that's coming out of that conference will do harm. It will do harm to the Medicare system. And I think that that's unacceptable. And I don't believe it will pass the United States Senate.
(END VIDEO CLIP)
KARL: So what is the deal? Here is a look at what the prescription drug benefit that would be included in Medicare under this would do.
First of all, there would be a $35 deductible, and it would cover -- I'm sorry, there would be a $35 premium, a $275 deductible. The benefit actually would not start until the year 2006, although there would be a discount card that would be issued to seniors starting next year.
Also, the deal would cover 75 percent of drug costs from $275 to $2,200. And for costs that go over $3,600, it would cover 95 percent of drug costs. But there is a catch here. Between those two figures, between $2,200 and $3,600 in prescription drug costs, this would cover nothing. The reason is they simply couldn't do that and come under the $400 billion deal they were looking at.
Now, this deal also makes changes to how Medicare will operate. On a pilot program basis, it would subject Medicare for actual health coverage to compete with private insurance companies. That's something the president wanted very badly, Republicans wanted very badly. But that's what Democrats are objecting to. And you can bet as this is debated in the House and the Senate over the next week or so, you'll here a lot of talk not just about the drug benefit but about the changes this bill would make to Medicare itself -- Andrea.
KOPPEL: Well, obviously have a very important story there. An estimated 40 million American senior citizens and those with disabilities that could be affected. Jon Karl, thanks so much.
KARL: Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Benefits>
Aired November 16, 2003 - 16:13 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDREA KOPPEL, CNN ANCHOR: After months of negotiations, it seems lawmakers on Capitol Hill have finally reached a tentative compromise on the Medicare reform and prescription drug bill. But will the delicate truth last long enough for the measure to become law? Congressional correspondent Jonathan Karl joins us from the Hill with details.
So Jon, how is this compromise legislation different from what the president wanted?
JONATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT: Well, there are some difference, but by and large this is what he was looking for. He wanted to get prescription drug coverage for seniors and he wanted to change the way the underlying Medicare system works. Those changes that he got are not quite as fundamental as what he was looking for. He really wanted to insert competition into Medicare.
There is some of that. But the big picture here is he did get what is now his top domestic priority before Congress, at least through a very important step. But now he has to pass it, Andrea, and there is significant opposition in Congress. The president earlier today said he was very happy to hear about the deal, but now he is challenging Congress to get that deal passed and sent to his desk.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think there's going to be immense pressure on members of both the House and the Senate to support this bill. It's a good piece of legislation. It is a complex piece of legislation. After all, we're changing a Medicare system that has been stuck in the past for a long period of time.
(END VIDEO CLIP)
KARL: And already the president has somewhat good news coming from AARP, which is of course the group that represents seniors, some 30 million Americans -- 35 million Americans over the age of 50. They have not endorsed this plan yet, but they said they were pleased with what they have seen and they are hopeful that it will come together and that it will pass.
But Democrats are already coming out. In fact, even before the deal was formally announced up here on Capitol Hill today, one of the top Democrats, maybe the top Democrat on health issues, Senator Ted Kennedy, came out and had some very strongly negative words about the deal.
(BEGIN VIDEO CLIP)
SEN. TED KENNEDY (D), MASSACHUSETTS: The cardinal rule in medicine is to do no harm. And this proposal that's coming out of that conference will do harm. It will do harm to the Medicare system. And I think that that's unacceptable. And I don't believe it will pass the United States Senate.
(END VIDEO CLIP)
KARL: So what is the deal? Here is a look at what the prescription drug benefit that would be included in Medicare under this would do.
First of all, there would be a $35 deductible, and it would cover -- I'm sorry, there would be a $35 premium, a $275 deductible. The benefit actually would not start until the year 2006, although there would be a discount card that would be issued to seniors starting next year.
Also, the deal would cover 75 percent of drug costs from $275 to $2,200. And for costs that go over $3,600, it would cover 95 percent of drug costs. But there is a catch here. Between those two figures, between $2,200 and $3,600 in prescription drug costs, this would cover nothing. The reason is they simply couldn't do that and come under the $400 billion deal they were looking at.
Now, this deal also makes changes to how Medicare will operate. On a pilot program basis, it would subject Medicare for actual health coverage to compete with private insurance companies. That's something the president wanted very badly, Republicans wanted very badly. But that's what Democrats are objecting to. And you can bet as this is debated in the House and the Senate over the next week or so, you'll here a lot of talk not just about the drug benefit but about the changes this bill would make to Medicare itself -- Andrea.
KOPPEL: Well, obviously have a very important story there. An estimated 40 million American senior citizens and those with disabilities that could be affected. Jon Karl, thanks so much.
KARL: Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Benefits>
